By Nitesh Shah, Director, Research, WisdomTree.
According to our internal models, we expect silver prices to rise close to 30% in the year to Q2 2021, outpacing our gold forecast of 18% over that same time frame.
Invesco has launched a sterling-hedged version of its blockbuster physical gold ETC. Chris Mellor, Head of ETF Equity and Commodity Product Management at Invesco, said, “Many investors this year have told us they want exposure to the gold price but not the currency risk attached to a US dollar asset. We are now able to offer these investors currency-hedged versions of the Invesco Physical Gold ETC, our largest exchange-traded product in Europe.”
Horizons ETFs Canada has slashed the management fee on the Horizons Gold ETF (HUG CN) from 0.65% to 0.20%, making it one of the lowest-cost gold ETFs in Canada. Steve Hawkins, President and CEO of Horizons ETFs, said, “Our fee reduction represents more than a two-thirds decrease in the management fee of the ETF – a significant cost savings opportunity that we are happy to pass on to investors looking for a low-cost ETF solution to obtain exposure to gold.”
By Nitesh Shah, Director of Research, WisdomTree.
Gold is the only major commodity to post year-to-date gains in the first half of 2020. The Covid-19 crisis has ripped apart the playbook for 2020. The International Monetary Fund, for example, started the year off expecting 3.3% GDP growth. That has been revised down to -4.9%.
Crude oil prices have been on a rollercoaster ride in 2020, sinking to record lows, briefly plunging deep into negative territory in the case of West Texas Intermediate (WTI), and, most recently, staging an impressive rebound. To help navigate this complex environment, WisdomTree, a leading issuer of commodity ETPs in Europe, recently shared its perspectives with an audience of investors in a webcast co-hosted with ETF Strategy.
The United States Oil Fund (USO US), the largest ETP globally to track changes in oil prices, is facing a class-action lawsuit related to an alleged breach of the 1934 Securities Exchange Act. The charges against USO, as well as its sponsor United States Commodity Funds (USCF), refer to the fund’s management during the extraordinary market conditions in early 2020.
By Mobeen Tahir, Associate Director, Research, WisdomTree.
Investors looking to participate in the expected cyclical economic recovery will be looking at assets best placed to benefit from the upswing. We believe copper presents a potentially compelling case.
The Stock Exchange of Hong Kong has welcomed its first ETP to provide leveraged exposure to commodity markets. The CSOP Gold Futures Daily (2x) Leveraged Product (7299 HK) provides 200% of the daily return of the Solactive Gold 1-Day Rolling Futures Index which tracks the performance of the active month gold futures contract traded on COMEX.
By Nitesh Shah, Director, Research at WisdomTree.
OPEC+ has agreed to extend more aggressive oil production cuts into July. In an earlier than originally scheduled meeting over the weekend (6-7 June), most members of the cartel have agreed to keep cutting production at the same pace they have been in May and June into July, instead of tapering the cuts lower.
Following another month of strong investor demand, gold ETFs globally have recorded greater inflows year-to-date (as of 31 May) than in any full calendar year period, according to data from the World Gold Council. Gold ETFs added 154 tonnes of new gold assets last month, equating to $8.5bn net inflows, despite rebounding stock markets.